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LAPLACE — First National Bank USA in LaPlace has handled 104 applications this month for the Paycheck Protection Program, a loan opportunity that gives business owners a lifeline to keep their employees afloat over troubled waters.

While the program is administered through the Small Business Administration, local banks such as First National Bank USA have authority to process, close and service loans without SBA oversight.

Loans must be funded by June 30, unless the deadline is extended, according to First National Bank USA Vice President Robert Laiche.

“Primarily, the program is designed to keep employees employed by these companies during this 90-day period from April 1 to June 30,” Laiche said. “Seventy-five percent of the proceeds are designed to be spent on wages. The remaining 25 percent can be spent on utilities, rent or interest on a loan.”

At the time of this writing, First National Bank USA was waiting for additional funds to be authorized by Congress for the continuation of the PPP loans. Businesses do not have to be a member of the bank to apply for a loan.

“The program is closed right now, but they are expecting another appropriation from Congress this week to open it up again,” Laiche said. ” Our lobby is closed but the drive-ups are open, and we’re here every day working on the loans and assisting customers with whatever they need.”

Borrowers can obtain both an SBA Economic Injury Disaster Loan and a PPP loan, according to the Small Business Administration. Economic Injury Disaster loans can also be refinanced with a PPP loan.

The Paycheck Protection Program loans, if used on payroll and other operating expenses, are forgivable. Forgiveness is allowed for business expenses over an eight-week period and include payroll and benefits, interest on existing mortgage debt and rent/utilities.

Repayment on loan costs that are not forgiven must start within six months to one year after the loan origination.

Borrowers that rehire workers who were previously laid off will not be penalized for having a smaller payroll at the beginning of the loan period. The interest rate on all loans is capped at one percent.

A completed application, the owner’s driver’s license and payroll expense verification should be made available to the First National Bank USA loan department. Lenders will want to see proof that employees were paid in the eight weeks following origination for the business owner to receive loan forgiveness.

The program is available to small businesses, 501(c)(3)s, self-employed individuals, independent contractors, sole proprietors and 501(c)(19) veterans organizations.

Companies must have less than 500 employees or meet the Small Business Administration’s definition of “small” business. Depending on the industry, “small” could mean a maximum of 250 employees or a maximum of 1,500 employees. For more information, contact the SBA Office of Size Standards by email at sizestandards@sba.gov or by phone at 202-205-6618.

To calculate the loan amount, first calculate the average monthly payroll expenditures over the past 12 months. This includes salaries, wages, commissions, tips; vacation, sick, family or paid medical leave; group health care coverage, including insurance premiums; retirement benefits and state or local tax on employee pay.

All full-time and part-time employees with a W2 or 1099 form can be included in this calculation. A sole proprietor would use his or her own earnings for the monthly payroll expenditures.

Multiply the average monthly payroll expenditures by 2.5 to get the loan amount. This should equal 2 1⁄2 months of gross payroll costs.

The loan amount cannot include the following: Salary exceeding $100,000, pay to employees living outside the United States, sick leave that has already been credited through the Families First Act, payroll taxes, income taxes or railroad retirement.

Congressman Garret Graves (R-Louisiana) encouraged small business owners to get started on applications as soon as possible since the project is subject to a funding cap.

“Louisiana small businesses, independent contractors, self-employed and non-profits need to also act quickly to review and evaluate the program and, if it could benefit them and their workforce, get to preparing their applications,” said Graves. “Louisiana is no stranger to disasters, and we know how to pull together in times of crisis. We will pull through this together, and the assistance from the CARES Act will help us emerge stronger.”

For more information or to get started, contact Robert Laiche (robertl@fnbusa.com), Emily Frost (emilyf@fnbusa.com) or Darlene Becnel (darleneb@fnbusa.com). The LaPlace branch is located at 377 Belle Terre Boulevard and can be reached at 985-651-0781.

An overview of this information is available at fnbusa.com.